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February 19, 2015 C- 1981- 008/New Horizon Mine BFB <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA Not Applicable <br />N - Air Resource Protection <br />N - Roads <br />N - Availability of Records <br />N - Reclamation Success <br />R - Backfill & Grading <br />N - Revegetation <br />N - Excess Spoil and Dev. Waste <br />N - Subsidence <br />N - Explosives <br />N - Slides and Other Damage <br />N - Fish & Wildlife <br />N - Support Facilities On -site <br />R - Hydrologic Balance <br />R - Signs and Markers <br />R - Gen. Compliance With Mine Plan <br />N - Support Facilities Not On -site <br />N - Other <br />N - Special Categories Of Mining <br />N - Processing Waste <br />R - Topsoil <br />COMMENTS <br />This was a partial inspection of the New Horizon Mine conducted by Brock Bowles of the Colorado Division of <br />Reclamation Mining and Safety. Frank Ferris of Western Fuels- Colorado was present for the entire inspection. <br />The weather was sunny and cool. The ground conditions were dry. <br />BACKFILL and GRADING — Rule 4.14 <br />Contemporaneous Reclamation 4.14.1; Approximate Original Contour 4.14.2; Highwall Elimination 4.14.1(2)(f); <br />Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic Materials 4.14.3; Stabilization of Rills and Gullies 4.14.6: <br />The northeast haul road was being reclaimed from the facilities area to the intersection at the 2700 and BB <br />Roads. Topsoil was being spread on the road areas but not in the bottom of the drainages. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, 4.05.10; <br />Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring 4.05.13; <br />Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />Ditch C -18 was inspected from Lincoln Ave to Pond 007. The cattails had been removed for the entire <br />length and the ditch was free and clear of obstructions (photo 1). <br />Four items in the Pond 007 drainage area need to be addressed: three culverts and the trees in ditch C4. The <br />culverts are not shown on Map 2.053(3) -1 or listed in Table 2.05.3(3) -2 Permit Area Culvert Designs. One is a 4- <br />5 feet diameter culvert used for field access on the Staats property across ditch C -18 (photo 2), the second is <br />between culvert 103 (under S. 5th Ave.) and Pond 007 (photo 3) and the third is in the San Miguel Draw directly <br />north of Pond 007 (photo 4). WFC explained to the Division that a contractor is scheduled to be onsite by mid - <br />March to re- assess the entire Pond 007 drainage area. A revision to the permit is expected to address the above <br />listed issues. <br />The Pond 007 dual culverts under 5th Ave were free and clear of obstructions and appear to be in working <br />condition. <br />Number of Partial Inspection this Fiscal Year: 6 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 6 <br />